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The 'two to three trillion Euros' is highly unlikely to be even mostly cash.

That is true, but even a fraction of that would be enough to completely floor the economy. Remember the bank run on Greek and Spanish banks last summer. Different from Greece and Spain, the ECB isn't going to put a single cent into Italy if the problem is perceived to be due to political instability in Italy.
by The European on Mon Mar 11th, 2013 at 08:16:10 AM EST
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the ECB isn't going to put a single cent into Italy if the problem is perceived to be due to political instability in Italy
The ECB is going to do whatever it needs to ensure its own continued existence as an institution.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 11th, 2013 at 08:17:33 AM EST
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Fortunately, if the ECB refuses to do its job as lender of first and last resort to the Italian government, the Italian central bank can recover a large fraction of the exiting money simply by defaulting on its outstanding Target balances.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Mar 11th, 2013 at 03:40:43 PM EST
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